Saturday, June 03, 2023
Thursday, 09 July 2020 11:21

Financing for smaller shipping companies is more expensive: George Kofinakos, StormHarbour

"The pandemic is taking the world economy back a long way. If we can compare this crisis to anything else, we are at a similar level to the end of World War II,” points out George Kofinakos, CEO StormHarbour London, in an interview with

He emphasized that this is a crisis that will not go unnoticed and that we will see great fluctuations. "We may see a recovery, but to get to the January 2020 level, we will have to wait two to three years,” he said.

Regarding the possibility of debt write-off due to a pandemic, he noted that most affected are the weakest economically countries, where there was anyway ground for debt write-off.

Regarding the economic recovery after the pandemic, he pointed out that the prospect is that whatever is lost this year, in the next two years, will be covered by the rapid recovery.

We can also see the dollar against the euro at a decade ago levels.

As for the red loans, Mr Kofinakos said that an escalation is possible. "However, the measures taken, both at European level and in Greece, can reduce costs."

When it comes to the maritime bank lending, he pointed out that many banks withdrew from shipping loans from the previous crisis.

Funding through digital platforms is still in its infancy. There is a prospect if big banks will support it.

Funding is expensive. The cost can reach up to 15%

Smaller shipping companies will continue to be funded mainly in this phase, by alternative sources.Large shipping companies borrow much cheaper than small ones, a trend that will continue.

Over the past 2-3 years as Storm Harbor we have funded shipping with more than $ 1 billion, mainly for purchases of second hand ships.

We are in a much more competitive period. There is intense fluctuation and uncertainty. It's not good timing right now to get into shipping. Banks, funds in general, are becoming even more demanding in the difficult market.


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